Telef·nica’s subsidiary Telefonica Centroam·rica Inversiones, S.L., 60% of which is owned, directly and indirectly, by Telefonica and 40% by Corporaci·n Multi Inversiones, has reached an agreement with Am·rica M·vil, S.A.B. of C.V. for the sale of the entire share capital of Telef·nica M·viles Guatemala, and 99.3% of Telef·nica M·viles El Salvador.
The aggregate amount of the transaction (enterprise value) for both companies is 648 million US dollars (approximately 570 million euros at the current exchange rate, 293 million of which correspond to Telef·nica Guatemala and 277 million to Telef·nica El Salvador), an implicit multiple for the total amount of the transaction of 9.7 times the estimated 2018 EBITDA of the two companies. The transaction is expected to generate capital gains before taxes and minorities of around 120 million euros, mainly from Telef·nica El Salvador.
The closing of the sale of Telef·nica Guatemala has taken place today. However, the closing of the sale of Telef·nica El Salvador is subject to the applicable regulatory conditions.
This transaction is part of the Telef·nica Group 's asset portfolio management policy based on a strategy of value creation, improving return on capital and strategic positioning. It also complements the objective of organic debt reduction and strengthening the balance sheet in a growing cash flow scenario, which allows us to maintain a sustainable and attractive shareholder remuneration.
